Mortgage Protection Math

Discussion in 'Life Insurance Forum' started by N8ivCal, Jun 17, 2017.

  1. N8ivCal
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    N8ivCal Member

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    Hello,

    I'm looking into doing the mortgage protection insurance gig and stumbled across related data in today's local paper, the Oregonian. "The month of May saw 2,896 homes sold across the Portland metro area..."

    Quick Google search says 32,798 homes were sold here in 2016.

    I've been reading on here you can expect a 1% return on DM. Well that's only 328 leads per year, 27 leads per month for every mortgage protection agent out there to work.

    I would think I'd need at least 20 leads per week to set 10-15 appts.

    I must be missing something painfully obvious.

    Can you help a brother out with your infinite wisdom? Much appreciated!
     
  2. DHK
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    DHK Well-Known Member

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    Yes. You're missing the fact that new homeowners still need to spend money on furniture, paint, repairs, appliances, etc.

    Now, I would get AGED homeowner leads - at least 1 year after they bought their house. Let them turn their house into a home and THEN sell mortgage protection to protect the home they have created.
     
  3. jboussea
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    jboussea Well-Known Member

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    Would you do a mailer to homeowners from a year before... or would you just call aged leads from the previous year?
     
  4. DHK
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    DHK Well-Known Member

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    If you send a letter, follow up with a phone call.

    You can save the postage by just making that same phone call.
     
  5. WinoBlues
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    WinoBlues Well-Known Member

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    Both then drip it via email addresses you get from phone calls..
     
  6. walthamny
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    walthamny Well-Known Member

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    Besides what DHK said, why would you limit yourself to new sales. People refinance all the time. They borrow against their home and increase their debt. Or they are single guy, buy a house and someone calls them for mortgage protection they ignore. Then life happens, the household size goes up. It is no longer a new home sale lead, but they need life insurance.

    You are assuming mortgage protection is only sold when you buy a house and 99.95% buy it at that time. Everyone must be all set now. In my practice, I only get to meet may be one household a year who has sufficient life insurance. It is so rare.
     
  7. jdeasy
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    jdeasy Well-Known Member

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    You're missing how many were refinanced.


    And if you want advice on selling MP then seek out someone actually selling MP for a living. Many giving you advice here have never prospected for MP sales.
     
  8. WinoBlues
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    WinoBlues Well-Known Member

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    How about the people that bought their home 5 or 10 years ago or 15 or 20 years ago? Orphan policy holders. If sold by the typical MP agent back then the agent most likely has left that company, MP segment and maybe the business altogether.

    It is just term insurance. In some cases higher priced SITerm. Should be easy enough to wedge the original salesman out if he has not served his clients. Assuming they bought. If not, they are just term prospects.

    I have sold Millions of dollars of term insurance that at least part was meant to pay for the mortgage. Just term insurance.

    ----------

    That.

    Refinance, marriage, child, bigger homes, businesses, debt. Life.
     
  9. N8ivCal
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    N8ivCal Member

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    I didn't realize the leads would include people who had refinanced.

    Thank you for all the feedback!
     
  10. mickeyma
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    mickeyma Well-Known Member

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    I've sold mortgage protection for 30+ years. There are 2 schools of thought:
    1. New buyers or new refinancees
    2. Wait one year because the competition has gone away.

    I've tried it both ways. The newbees are easier to sell than existing ones.
    I guess fear of the bigger rent payment is the reason.

    Logic would say refinanced are better since many use the $ to pay off credit cards, car loans, etc. and now their monthly payments are less. But, not the case for setting appointments.
     
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